Quality-Adjusted Life Years (QALYs) are the most widely-used measure of health in cost– effectiveness analysis and cost–benefit analysis. Within a welfarist framework QALYs are consistent with people’s preferences under stringent assumptions. Several authors have argued that QALYs are a valid measure of health within an extra-welfarist framework. This paper studies the applicability of QALYs wi...

Tradable permits are celebrated as a political instrument since they allow (i) firms to equalize marginal abatement costs through trade and (ii) the government to distribute the burden of the policy in a politically fair and feasible way. These two concerns, however, conflict in a dynamic setting. Anticipating that high-cost firms will receive more permits in the future, firms purchase excessiv...

This paper extends previous works that view transit systems as minimizing their after-subsidy costs. The paper uses the expense preference behavior model in economics and derives ®rst-order conditions for the manager. From the ®rst-order conditions, the paper formally shows that the decomposition of relative price ineciency between management behavior and subsidies found in the work of Sakano ...

The value of environmental assets such as biodiversity, unique locations and the atmosphere may be hard to quantify. The implications of the irreversibility of decisions to destroy these has been the subject of extensive discussion. We analyze the value of such assets under conditions of uncertainty about future preferences, and show that this uncertainty will imply a conservation motive if it ...

Education development is a critical component for a modern economy as the illiteracy rate can hinder economic growth. The illiteracy rate in China has decreased rapidly since 1980s, but there still exists an imbalance in distribution of educational resources among different regions. In order to explore the impacts of education quality on regional economic growth, we employ a quadratic direction...

We address the issue of a tradeoff between longand short-term interests in economic management. Starting with an obvious observation that the actions targeted to longand short-term goals are generally in conflict, we pass on to a less obvious satement that it is not an exceptional situation that a smart decision maker can reduce or even eliminate the conflict. We illustrate the statement by an ...

For portfolio optimisation under proportional transaction costs, we provide a duality theory for general càdlàg price processes. In this setting, we prove the existence of a dual optimiser as well as a shadow price process in a generalised sense. This shadow price is defined via a “sandwiched” process consisting of a predictable and an optional strong supermartingale and pertains to all strateg...

Analyzing Cost Efficient Production Behavior Under Economies of Scope: A Nonparametric Methodology In designing a production model for firms that generate multiple outputs, we take as a starting point that such multi-output production refers to economies of scope, which in turn originate from joint input use and input externalities. We provide a nonparametric characterization of cost efficient ...

In a financial market with a continuous price process and proportional transaction costs we investigate the problem of utility maximization of terminal wealth. We give sufficient conditions for the existence of a shadow price process, i.e. a least favorable frictionless market leading to the same optimal strategy and utility as in the original market under transaction costs. The crucial ingredi...

T his research is an attempt to determine the agronomic plan, shadow price and final value with an emphasis on optimization of water use in five main agricultural regions of Kerman province (Kerman, Baft, Bardsir, Bam, and Jiroft) and five crops (wheat, barley, potato, onion, and tomato). Analysis was based on three scenarios: (i) current planting conditions, (ii) profit maximization...